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Russian ministry of culture has new idea how to support development of domestic cinematography

Russian ministry of culture (MinCult) believes it would be very helpful for domestic cinematography if companies, making money on movies demonstration, would pay certain amount from their revenues in order to support Russian cinematography.

Cinemas and movie distributors it is intended to oblige to pay 3% of their incomes; television broadcasters and online cinemas it is intended to oblige to pay 0,5% of their incomes. The total of collected sum can be about 3-4 billion roubles annually. But what exactly means incomes it is not specified yet. MinCult wants make Cinema Fund (federal fund for social and economic support to national cinematography) responsible for collection of these sums. This fund is subordinated to Russian government and allocates state subsidies to movie producers. Indicators of efficiency should be set up in order to show how fund performs its duties. MinCult hopes Russian president would uphold this idea.

But not all market players are happy with this idea. Russian online cinemas negatively assess perspectives of additional dues. They pay about 50% to right holders. Their business is not so profitable. If they will pay support of Russian movie producers, then who will support them? Besides more than half of their catalogue consists of Russian movies, so they already support Russian cinematography, they claim. Some believe MinCult has not specified transparent scheme of money allocation among movie producers requiring support. There were also “counter-idea” – collect money for support of Russian cinematography from pirates. They really have enough money to support domestic producers.

Some of broadcasters also are not so glad to MinCult’s idea. They believe it will negatively affect Russian cinematography. Channels have explained, if they will be obliged to pay additional fee to support Russian movie industry they will need to compensate new expenditures and therefore they will need to reduce their expense on Russian films and to enlarge time for advertisement which replace promos of Russian films. Russian channels also don’t understand, if most time they broadcast Russian serials and television programs why they have to pay to support Russian movie industry. They already do it. They already produce Russian movies. Actually many professionals believes MinCult idea can kill Russian cinematography.